When an economy operates efficiently,
A. the MRPs of every input into the production of a good are equal.
B. marginal utility equals marginal cost for every good.
C. the price of a good equals the sum of the marginal physical products of its inputs.
D. All of the responses are correct.
Answer: B
Economics
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The table above gives data for the nation of Mosh. The MPC of the economy is
A) .75. B) 1. C) .90. D) .80. E) indeterminate with the information provided.
Economics
Factors of production include
A) the economic system. B) land, labor, capital and entrepreneurship. C) labor and capital (not land, which is fixed). D) only capital, land, and labor.
Economics